Jude Martin M.

De Guzman

BSACT2H | BMG 114

CASE STUDY # 2

I. Title: Natasha Company

Summary:
It was the year 1994 when the retail shop Natasha was established, it was
located at a 100-sqm area on the second floor of a mall along EDSA, the store was
selling will but not all time because of the energy crisis and the sawa scare around the
mall, which created fear for the safety in dimly lighted shopping mall which lessen the
people coming in the mall turning a major break down to the sales of Natasha stores.
Victoria Jardiolin the owner, decided to do put Natasha in wholesale instead of retailing.
Through the use of wholesaling, Natasha would contract dealers who would then resell
their products to the third costumers or consumers. Technically, she gave dealers about
a dozen pairs of shoes. The idea of network marketing begins. She invited relatives to
help her come up with the idea of direct selling the shoe which it turned out to be
successful. Natasha became stable and stronger by the year 1998. The operation is
turning her dealers into a great businessman. They were taught how to improve their
business, by developing them a set of values that Natasha shows by example. Today,
Natashas direct selling is through over 200,000 dealers, 80% of which are active. In
July 1999, the Executive Committee of Natasha was studying alternative strategies for
the expansion. There are some issues as to whether the company should expand its
branches to some provinces or expand in Metro Manila. There are many factors to be
considered in making a decision.
II. Time Context: 1999
Vision
Acquire a great feedback from customers and build good relationship with our dealers
and also to the customers.

Mission
To have a long-term business relationship with our members and becoming members.

III. Objectives

To increase the number of dealers they have.

To make a tactical presentation about the development of the company.
To maintain success even if its not new to the eyes of the public anymore.

IV. Statement of the Problem

The company would like to expand its branches, where would the company expand its
branches to Rizal (Region IV), Davao (Region XI), Cebu (Region VII), Dagupan (Region
I), Iloilo (Region VI) and or expand in Metro Manila (NCR) which would they prioritize?
V. Areas of Consolidation
Strengths

They have high quality of products.

They have high discounts, incentives for members.
They use technology for the customer to shop at home.
Their products are affordable and worth buying.
Comfortable credit terms
They keep it personal when it comes to customers that uses their products.

Weaknesses

They have difficulty upon collecting the payment.

The delivery of the products from customers houses.
They are lacking of branches for potential customers outside their main location.

Opportunities

Attract customers by using new ways to get their products (Installment Basis,

etc.)
It attracts new potential dealers because of their high discounts and incentives.
People may find them convenient most of the time.
Expansions of the company.
Adaptation to new technology and advancements.

Threats

High level of competition in the markets.

Technology and its new way of producing shoes.
Natural Disasters.
Fraud dealers and scamming.

VI. Alternative Courses of Action

These

are

the

possible

solutions

to

the

problem

with

corresponding

advantages/disadvantages:
1. They should attract dealers and increase the benefits of becoming a member, but
it would cost a lot more for additional benefits.
2. Make the company be known to the potential customers, but it would take some
time for people to like the products
3. Try to adjust the products in the likings of the new generation, but it would cost
time and effort.
4. Plan new position that will enable them to explore vital functions of the firm, but it
would cost money and space in the company.
VII. Plan of Action
1. Build new branches that are necessary and close to the market for high potential
to attract customers.
2. Survey the place before deciding whether they are good to create branches and
if the place is good for attracting new customers.
3. Remove some branch that isnt necessary and costing a lot of money.
4. Its better if they expand in metro manila because most markets are being placed
here and its a place where business are most being made.
IX. Potential Problems

1. What if theres a new way of making shoes?

2. What if an economic crisis started within the area?
3. What if shoes are not really a good product to sell within the area?
X. Contingency Plan
1. Try to adapt and learn to accept changes within the market to maintain a good
reputation and always keeping up with the generation.
2. Always plan a back-up plan and have a restoration plan whenever theres a
problem heading in the nearest future.
3. Make a new product that is not too far from your business like clothes, eye wear,
cosmetic products, things that are related to fashion and clothing would do.